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CELESTICA INC (CLS.CA) Stock Fundamental Analysis

TSX:CLS - Toronto Stock Exchange - CA15101Q2071 - Common Stock - Currency: CAD

185.26  -5.44 (-2.85%)

Fundamental Rating

6

Overall CLS gets a fundamental rating of 6 out of 10. We evaluated CLS against 14 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CLS a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
Each year in the past 5 years CLS has been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
CLS.CA Yearly Net Income VS EBIT VS OCF VS FCFCLS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

1.2 Ratios

The Return On Assets of CLS (6.36%) is better than 71.43% of its industry peers.
With an excellent Return On Equity value of 20.73%, CLS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CLS has a Return On Invested Capital of 13.55%. This is in the better half of the industry: CLS outperforms 78.57% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 8.21%. This is significantly below the industry average of 17.70%.
The last Return On Invested Capital (13.55%) for CLS is above the 3 year average (8.21%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.36%
ROE 20.73%
ROIC 13.55%
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
CLS.CA Yearly ROA, ROE, ROICCLS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

CLS has a Profit Margin of 4.08%. This is in the better half of the industry: CLS outperforms 64.29% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
The Operating Margin of CLS (5.61%) is better than 64.29% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 10.47% is on the low side compared to the rest of the industry. CLS is outperformed by 85.71% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
Industry RankSector Rank
OM 5.61%
PM (TTM) 4.08%
GM 10.47%
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
CLS.CA Yearly Profit, Operating, Gross MarginsCLS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CLS is creating some value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
The debt/assets ratio for CLS has been reduced compared to a year ago.
CLS.CA Yearly Shares OutstandingCLS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
CLS.CA Yearly Total Debt VS Total AssetsCLS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

CLS has an Altman-Z score of 4.27. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a better Altman-Z score (4.27) than 64.29% of its industry peers.
The Debt to FCF ratio of CLS is 2.47, which is a good value as it means it would take CLS, 2.47 years of fcf income to pay off all of its debts.
CLS has a better Debt to FCF ratio (2.47) than 78.57% of its industry peers.
CLS has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CLS (0.49) is worse than 64.29% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.47
Altman-Z 4.27
ROIC/WACC1.57
WACC8.62%
CLS.CA Yearly LT Debt VS Equity VS FCFCLS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
CLS's Current ratio of 1.47 is in line compared to the rest of the industry. CLS outperforms 42.86% of its industry peers.
A Quick Ratio of 0.87 indicates that CLS may have some problems paying its short term obligations.
CLS has a Quick ratio of 0.87. This is comparable to the rest of the industry: CLS outperforms 42.86% of its industry peers.
Industry RankSector Rank
Current Ratio 1.47
Quick Ratio 0.87
CLS.CA Yearly Current Assets VS Current LiabilitesCLS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

7

3. Growth

3.1 Past

CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.09%, which is quite impressive.
CLS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.61% yearly.
The Revenue has grown by 17.52% in the past year. This is quite good.
CLS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%

3.2 Future

Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 27.81% on average per year.
CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.98% yearly.
EPS Next Y61.2%
EPS Next 2Y36.28%
EPS Next 3Y31.25%
EPS Next 5Y27.81%
Revenue Next Year21.83%
Revenue Next 2Y15.54%
Revenue Next 3Y14.86%
Revenue Next 5Y14.98%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CLS.CA Yearly Revenue VS EstimatesCLS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B 10B
CLS.CA Yearly EPS VS EstimatesCLS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 36.18, which means the current valuation is very expensive for CLS.
CLS's Price/Earnings ratio is a bit cheaper when compared to the industry. CLS is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.12. CLS is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 28.61, which means the current valuation is very expensive for CLS.
CLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 85.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 94.77, CLS is valued rather cheaply.
Industry RankSector Rank
PE 36.18
Fwd PE 28.61
CLS.CA Price Earnings VS Forward Price EarningsCLS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

71.43% of the companies in the same industry are more expensive than CLS, based on the Enterprise Value to EBITDA ratio.
71.43% of the companies in the same industry are more expensive than CLS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 39.37
EV/EBITDA 22.94
CLS.CA Per share dataCLS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 31.25% in the coming years.
PEG (NY)0.59
PEG (5Y)2.05
EPS Next 2Y36.28%
EPS Next 3Y31.25%

0

5. Dividend

5.1 Amount

No dividends for CLS!.
Industry RankSector Rank
Dividend Yield N/A

CELESTICA INC

TSX:CLS (2/7/2025, 7:00:00 PM)

185.26

-5.44 (-2.85%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)01-27 2025-01-27/amc
Earnings (Next)N/A N/A
Inst Owners83.02%
Inst Owner ChangeN/A
Ins Owners1.24%
Ins Owner ChangeN/A
Market Cap21.56B
Analysts82.22
Price Target110.93 (-40.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.65%
Min EPS beat(2)10.52%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)10.52%
Max EPS beat(4)17.99%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)9.91%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)2.4%
Max Revenue beat(2)5.37%
Revenue beat(4)4
Avg Revenue beat(4)3.44%
Min Revenue beat(4)1.78%
Max Revenue beat(4)5.37%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)3.32%
Revenue beat(16)13
Avg Revenue beat(16)2.36%
PT rev (1m)27.34%
PT rev (3m)67.31%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0.4%
EPS NY rev (3m)6.51%
Revenue NQ rev (1m)1.02%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.78%
Valuation
Industry RankSector Rank
PE 36.18
Fwd PE 28.61
P/S 1.63
P/FCF 39.37
P/OCF 27.94
P/B 8.26
P/tB 12.97
EV/EBITDA 22.94
EPS(TTM)5.12
EY2.76%
EPS(NY)6.48
Fwd EY3.5%
FCF(TTM)4.71
FCFY2.54%
OCF(TTM)6.63
OCFY3.58%
SpS113.95
BVpS22.44
TBVpS14.29
PEG (NY)0.59
PEG (5Y)2.05
Profitability
Industry RankSector Rank
ROA 6.36%
ROE 20.73%
ROCE 17.92%
ROIC 13.55%
ROICexc 15.72%
ROICexgc 21.4%
OM 5.61%
PM (TTM) 4.08%
GM 10.47%
FCFM 4.13%
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
ROICexc(3y)9.62%
ROICexc(5y)7.81%
ROICexgc(3y)13.89%
ROICexgc(5y)11.15%
ROCE(3y)10.86%
ROCE(5y)8.6%
ROICexcg growth 3Y33.48%
ROICexcg growth 5Y11.53%
ROICexc growth 3Y32.77%
ROICexc growth 5Y11.81%
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
F-Score8
Asset Turnover1.56
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.47
Debt/EBITDA 1.27
Cap/Depr 86.92%
Cap/Sales 1.69%
Interest Coverage 8.74
Cash Conversion 77.08%
Profit Quality 101.17%
Current Ratio 1.47
Quick Ratio 0.87
Altman-Z 4.27
F-Score8
WACC8.62%
ROIC/WACC1.57
Cap/Depr(3y)64.87%
Cap/Depr(5y)59.28%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.26%
Profit Quality(3y)140.8%
Profit Quality(5y)221.3%
High Growth Momentum
Growth
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
EPS Next Y61.2%
EPS Next 2Y36.28%
EPS Next 3Y31.25%
EPS Next 5Y27.81%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
Revenue Next Year21.83%
Revenue Next 2Y15.54%
Revenue Next 3Y14.86%
Revenue Next 5Y14.98%
EBIT growth 1Y42.82%
EBIT growth 3Y49.18%
EBIT growth 5Y18.85%
EBIT Next Year80.04%
EBIT Next 3Y30.47%
EBIT Next 5Y28.61%
FCF growth 1Y122.77%
FCF growth 3Y17.7%
FCF growth 5YN/A
OCF growth 1Y104.95%
OCF growth 3Y21.5%
OCF growth 5Y66.98%